SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16106 / April 6, 1999
[United States v. James Michael Cogley, et al., S.D. OH; No. CR2-
99-039] [SEC v. James Michael Cogley, et al., S.D. OH; No. C2-98-
802]
COURT FINDS JAMES MICHAEL COGLEY IN CRIMINAL CONTEMPT
FOR VIOLATING PRELIMINARY INJUNCTION ORDER
The Commission announced that on April 1, 1999, the United
States District Court for the Southern District of Ohio accepted
James Michael Cogley’s (Cogley) guilty plea to criminal contempt
for violating provisions of an Order of Preliminary Injunction
entered against him by consent on August 18, 1998. The Court
found that Cogley violated a provision of the Preliminary
Injunction that prohibited him from receiving, directly or
indirectly, funds for the purpose of investment. The Court
noted that Cogley was a "predator of a different sort" and
sentenced him to 30 days in jail, fined him $1000 and ordered a
special assessment of $25.
Earlier, on February 24, 1999, the Commission filed an
Emergency Motion for an Order to Show Cause why Cogley should not
be held in civil contempt for violating the Preliminary
Injunction. At the civil contempt hearing on March 5, 1999, it
was established that Cogley had received at least $310,000 from
at least two investors. The Court found that Cogley’s conduct
violated the Preliminary Injunction and set a criminal contempt
hearing to determine whether Cogley should be held in criminal
contempt for the violative conduct.